Many of our local businesses are facing an uncertain financial future due to the measures implemented to slow the spread of COVID-19, and the recent extension of the “Stay at Home” order to May 4th only compounds those uncertainties. In an effort to balance the financial needs of state and local governments with the impacts taxpayers are facing, today the Minnesota Department of Revenue is extending the Sales and Use Tax grace period for businesses impacted by Governor Walz’s closure order.
Another resource for our local businesses is the Small Business Emergency Loan program that was announced last week. The program will make loans between $2,500 and $35,000 available for qualifying small businesses impacted by COVID-19. The loans will be 50% forgivable, and offered at a 0% interest rate. If other financing becomes available to small businesses that received an emergency loan, such as federal funding, the emergency loan must be repaid.
These emergency loans will be made available by an existing network of lenders the Minnesota Department of Employment and Economic Development (DEED) works with across the state. Depending on the size of the loans offered to businesses, DEED estimates this emergency loan program will provide needed resources to between 1,200 and 5,000 businesses. Our small businesses should send questions about this emergency loan program to ELP@state.mn.us.
Additional guidance on employer and employee support can be found on DEED’s website here. If you have any other questions about our work in the Minnesota House or resources available to our community, please feel free to contact our office.
Brad Tabke, State Representative | Rep.Brad.Tabke@house.mn
Eric Petersen, Legislative Assistant | Eric.Petersen@house.mn